Barclays share price was trading at a 24-hour high of 204.05p today, as it continued with its scintillating run, stretching back to mid-September. At the time of writing, the bank’s share price was on its third day above 200.0p, buoyed by good earnings report released last week.
Barclays made a pre-tax profit of £2 billion in the three months ending in September, more than doubling the £1.1 billion it made in the year-ago period while revenue totaled £5.5 billion. This result topped expectations. The share price then retreated slightly due to some profit-taking following, but it has since bounced back strongly.
After covid-19 ravaged its earnings in 2021, the bank has bounced back strongly this year. Its share price was at a 52-week high and nearly doubling its capitalization over that period.
Unlike most of its competitors, in the UK, Barclays is not solely focused on retail banking, but has diversified. It has both the commercial lending and investment segments within and outside the UK. When the UK banking sector is struggling, this larger business strategy can help absorb the shocks and lift it. The company’s Q3 results proved this to be true.
Barclays share price has been on a strong uptrend over the past three weeks, supported by strong buying momentum. During that period, the RSI has grown from 37 to the current 67. Considering the current RSI, further price gains look probable. The near-term resistance is likely to be at the long-term high price of 204.05p, with the first support coming at 200.45p. With the RSI nearing 70, it signals that the shares could soon be overbought. If that happens, the momentum could slow down, with the support shifting to 197.75p. Beyond that point, the next support is likely to be established at 194.60p.